- The ongoing US Fed meeting would be the key event this week which would drive the near term market direction, say experts
Sensex snapped its five-day gaining streak on Tuesday amid weak global cues on risk exposure ahead of a key policy meeting of the US Federal Reserve amid continuing uncertainty over the Ukraine crisis. In a volatile trade, the BSE Sensex closed 709 points at 55,776, whereas, the Nifty dived 1.23% to 16,663.
Asian stocks rose on Wednesday as Chinese technology shares rebounded from a brutal selloff. Meanwhile, SGX Nifty indicates a positive start for the Indian indices today. Investors await the US Fed announcement due on Wednesday in which it is expected to raise interest rates to rein in inflation.
“After almost 1,000 points run up in last seven day, Nifty is now consolidating between 16,600-16,800 zones. While we have seen a strong rally in large caps, the broader market has not yet participated and is underperforming the Nifty. Also, with softening of crude and metal prices, we are witnessing interest in sectors which had underperformed so far like Auto and FMCG. The ongoing US Fed meeting would be the key event this week which would drive the near term market direction,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal.
Index levels to watch
“The sharp downward reversal of Tuesday from near the crucial resistance zone of 16800-17000 indicate chances of further downward correction in the market for short term. The overall chart pattern signal a chances of higher bottom formation around 16400-16250 levels in the next few sessions, before showing another round of upmove,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
“Nifty formed a dark cloud cover on the daily chart as it found resistance around 200DMA on the daily chart. On the lower end, it found support at the upper band of the falling channel. Going forward, the index may remain in the green as long as 16640 is held decisively. On the higher end, resistance is visible at 16900-17000,” said Rupak De, Senior Technical Analyst at LKP Securities.
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